Indonesia needs to ensure policy reforms to pave the way for renewable power and to reduce reliance on coal, as part of a goal to achieve net-zero emissions by 2060, the International Energy Agency said in a report released on Friday.
The Southeast Asian country aims to lift the renewable portion of its energy mix to 23 per cent by 2025, but has only reached around 12 per cent so far. Coal currently powers around 60 per cent of the country's electricity needs. Solar projects in Indonesia currently cost more than twice the amount of those in similar emerging economies, it said, and were economically uncompetitive compared to coal and natural gas power plants.
Indonesian President Joko Widodo is expected to issue a new rule on electricity tariffs aimed at attracting investment into renewables, but the regulation has been delayed for years.